Louisiana Contractor Business and Law Course Exam Prep
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Free LA-BL Practice Questions

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Question 1

Assume Louisiana law effective August 1, 2026. A residential construction licensee submits a $600,000 liability policy covering twelve months. The certificate contains the required identifying information and lists LSLBC as certificate holder, but the policy excludes roofing, one of the licensee's scopes. How should the filing be evaluated?

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Correct answer: B - Deficient because every licensed scope must be covered without an exclusion

Question 2

Two otherwise responsive electrical bids have equivalent schedules and qualifications. Bid X is $410,000 and includes fixtures and commissioning. Bid Y is $382,000 but excludes $31,000 of fixtures and $15,000 of commissioning. Which quotation is lower after bid leveling?

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Correct answer: C - Bid X, because its leveled cost is $410,000 versus $428,000 for Bid Y

Question 3

An estimator projects $240,000 in direct and indirect job costs. Company policy requires a 20% gross margin on the selling price, not a 20% markup on cost. Before taxes, bonds, or other adjustments, which bid price meets the target?

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Correct answer: B - $300,000

Question 4

A contractor's qualifying party for the electrical classification leaves on January 10. The contractor gives LSLBC written notice on January 28, and a replacement is still being qualified on February 20. Under the current Louisiana administrative rule, what may the contractor do before the replacement qualifies?

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Correct answer: D - Continue existing work and bid new projects, but delay starting them

Question 5

A competent person inspects a six-foot-deep trench in soil that is not stable rock. No sloping, shoring, shielding, or other protective system is installed, and the crew is preparing to enter. What is the superintendent's immediate duty?

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Correct answer: D - Prevent entry until an adequate cave-in protective system is in place

Question 6

A controller discovers that one accounts-payable clerk can create vendors, enter invoices, and release electronic payments. No specific fraud has been identified. Which control should the contractor implement first?

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Correct answer: C - Separate vendor setup from payment release and verify vendor changes independently

Question 7

An engineer answers an RFI with a sketch that adds a drain line. The contract states that RFI responses are clarifications only and that changed work requires an executed change order or written construction change directive. The owner's field representative says orally, 'Keep moving.' What is the project manager's best next step?

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Correct answer: B - Give the required written notice and obtain contract-authorized direction before proceeding

Question 8

A Louisiana contract for work requiring licensure states the parties' names and addresses, the contractor's license number, scope, fixed price, signatures, and required insurance certificates. It also says that 'plans and specifications are incorporated' without identifying those documents. Which required contract element is still missing?

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Correct answer: A - A clear description of the documents incorporated by reference

Question 9

A project has two paths that merge into final Activity F: A-B-D-F has durations of 4, 6, 5, and 2 days; A-C-E-F has durations of 4, 3, 7, and 2 days. Assuming no logic or resource changes, which schedule action achieves a one-day reduction in calculated project duration?

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Correct answer: A - Crash Activity D by one day

Question 10

A contractor's current ratio has fallen from 1.45 to 0.82 while its receivables aging has worsened and backlog has increased. Which interpretation is most defensible?

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Correct answer: C - Current liabilities exceed current assets, signaling potential short-term strain

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